Environmental Factors affecting the U.S Hotel Industry

Abstract

The purpose of this research paper is to identify the environmental factors affecting the marketing decisions at the global, as well as, domestic level. For this purpose, we analyzed the set of other factors also that are affecting an organization's marketing decisions.

Table of Contents

Abstract2

Introduction4

Discussion4

1.Environmental factors that affect global and domestic marketing decisions4

2.Influence of Global Economic Interdependence5

3.The Effect of Trade Practices and Agreements5

4.The Importance of Demographics and Physical Infrastructure5

5.Influence of Cultural Differences6

6.Importance of Social Responsibility and Ethics versus Legal Obligations6

7.Effect of Political Systems and the Influence of International Relations6

8.Influence of the Foreign Corrupt Practices Act of 19777

9.Influence of Local, National and International Legislation8

10.Effect of Technology8

References10

Environmental Factors affecting the U.S Hotel Industry

Introduction

The paper elaborates the environmental factors that affect the global and domestic marketing decisions in a hotel industry of the U.S. It also discusses briefly the several other factors that affect the organization's marketing decisions. These factors include: the impact of global economic interdependence, the effect of agreements and trade practices in a country, the important characteristics of demographics and physical infrastructure, the impact of cultural differences, importance of ethics versus legal obligations, the brief analysis of Foreign Corrupt Practices Act and lastly, it discusses the advantages and disadvantages of using modern technology.

Discussion

Environmental factors that affect global and domestic marketing decisions

Any identifiable component in the cultural, economic, political, social, demographic, cultural and technological environment that is the cause of affecting the survival, operations and growth of an organization are considered as the environmental factors. The social and demographic elements may include the classification of population on the basis of characteristics and values. These characteristics may be defined as the buying behavior of consumers, cultures, attitudes and gender differences. The economic elements include the factors that affect the expenditures, income and cost of running the business. The technological elements refer to the new inventions and innovations in technology. Lastly, the competitive elements include the availability of substitutes of the product, at global and domestic level, by the competitors (Kong. M, Jogaratnam,G, 2007). Let us consider the hotel industry of US and determine the following influences on U.S Hotel Industry:

Influence of Global Economic Interdependence

Global economic interdependence refers to the complex and highly effective exchange system by the division of labor. It involves specialized systems in interconnecting the world globally. The influence of global economic interdependence on an organization's marketing decisions is indispensible. The countries where the global interdependence is really high are more likely to be influenced by the financial crisis in other countries. Therefore, the countries with high interdependence rate with other countries must develop their strategic plans and strong monetary and fiscal policies to compete with any kind of financial crisis occurring globally. The Effect of Trade Practices and Agreements

According to global industry analysts, global hotel industry will reach US$479 billion by FY2015. Trade practices and agreements are of crucial importance in taking marketing related decisions as they involve concepts from the economic, sociology and scientific management disciples of a ...